After the capital expenditure guidance shocked the market, Google's parent company issued $20 billion in bonds to boost artificial intelligence

K-LinePoet · 2026-02-20T03:05:34+00:00

Alphabet raises $20 billion through bond issuance, primarily for artificial intelligence infrastructure investments. The company expects capital expenditures to reach $175 billion to $185 billion by 2026, raising concerns among investors about high spending, leading to a decline in stock price and a market value evaporation of approximately $350 billion. Analysts expect multiple companies to invest over $500 billion in the AI sector.

K-LinePoet

2026-02-20 03:05:34

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According to Reuters on February 10, Alphabet (Google’s parent company) recently raised $20 billion through a bond issuance divided into seven parts. These bonds will extend until 2066, leveraging the debt market to fund its surge in spending on artificial intelligence infrastructure.

It is noteworthy that on February 4, Alphabet released its Q4 and full-year financial results ending December 31, 2025, showing that the company’s capital expenditure for 2026 will reach $175 billion to $185 billion, nearly double the total for 2025, shocking Wall Street. After the earnings report was released, Alphabet’s stock price initially dropped after hours, falling by 7.5%, with a market value instantly evaporating about $350 billion.

Investors are concerned that the company’s large-scale capital investments in AI may take longer than expected to show results. Analysts estimate that Microsoft (MSFT.US), Alphabet, Meta (META.US), and Amazon (AMZN.US) will invest over $500 billion in AI this year.

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